The Reserve Bank of India (RBI) said the National Payments Corporation of India (NPCI) has been asked to examine the possibility of it becoming a third-party application provider for continued UPI operations of the Paytm app. The central bank has barred Paytm Payments Bank from accepting further credits into its customer accounts and wallets after March 15, 2024.
In a bid to ensure seamless digital payments by UPI customers using ‘@paytm’ handle operated by the Paytm Payments Bank, the RBI said it has asked NPCI to examine the request to become a Third-Party Application Provider (TPAP) for UPI channel for continued UPI operation of the Paytm app.
The request has been made by One97 Communication Ltd (OCL), which owns the Paytm brand, the RBI said in a statement.
For seamless migration of ‘@paytm’ handle to other banks, the RBI said NPCI may facilitate certification of four-five banks as Payment Service Provider (PSP) Banks with demonstrated capabilities to process high volume UPI transactions.